When it comes to offering your employees perks, one of the most popular is a great benefits package. Combined with flexible work locations, paid leave, monetary bonuses, and a healthy retirement plan, employees want health insurance. In fact, health insurance is the most popular of the benefits.
As a business owner, you may already realize the difficulty of providing an affordable insurance plan, but there are options you can consider. One of these is the captive insurance policy. How does this type of plan compare with PPOs, self or fully funded options? For the best information, contact a captive insurance consulting agency. In the meantime, check out some pros and cons.
The Chance to Tailor Coverage
With the ability to customize your policy you can choose the coverage that is the best match for your existing risks. With captive insurance, you may find that you have access to coverage that you couldn’t otherwise afford, including medications and operations for employees who wouldn’t get them through traditional insurance options.
Stability Through Numbers
A captive program lets you pool your plan with other employers. This is especially beneficial for small business owners with just a few employees. Your renewal rate isn’t completely at the mercy of the insurance carrier, instead, you’ll enjoy increasing stability as you renew from year to year.
Fixed Costs Equal Lower Costs
One of an employer’s favorite reasons to work with a captive insurance program is the financial savings. With these solutions, employers are often able to hold onto a percentage of the money that is invested in healthcare plans.
What’s the Best Option?
Naturally, there are some disadvantages to choosing captive insurance. Some business owners are leery of putting their own capital at risk. Some employers have found that it’s harder to gain access to the insurance or to leave the insurance if they want something different. However, the advantages of a captive policy often outweigh the risks. If you’re looking for a way to provide your employees with the benefits they want, consider whether this type of insurance policy would be a good solution.